Is NASDAQ:AMGN a Good Fit for Dividend Investing?

AMGEN INC (NASDAQ:AMGN) has caught the attention of dividend investors as a stock worth considering. NASDAQ:AMGN excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Deciphering NASDAQ:AMGN's Dividend Rating

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:AMGN has been awarded a 7 for its dividend quality:

• AMGN's Dividend Yield is rather good when compared to the industry average which is at 34.72. AMGN pays more dividend than 98.34% of the companies in the same industry.
• AMGN's Dividend Yield is a higher than the S&P500 average which is at 2.45.
• On average, the dividend of AMGN grows each year by 10.76%, which is quite nice.
• AMGN has been paying a dividend for at least 10 years, so it has a reliable track record.
• AMGN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Health Examination for NASDAQ:AMGN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:AMGN, the assigned 5 for health provides valuable insights:

• AMGN has a better Altman-Z score (1.74) than 66.45% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 6.45, AMGN belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
• AMGN has a Current Ratio of 2.86. This indicates that AMGN is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.56 indicates that AMGN has no problem at all paying its short term obligations.

Profitability Insights: NASDAQ:AMGN

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:AMGN, the assigned 8 is a significant indicator of profitability:

• With an excellent Return On Assets value of 8.36%, AMGN belongs to the best of the industry, outperforming 96.84% of the companies in the same industry.
• AMGN has a Return On Equity of 98.82%. This is amongst the best in the industry. AMGN outperforms 99.67% of its industry peers.
• The Return On Invested Capital of AMGN (10.97%) is better than 96.51% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for AMGN is above the industry average of 13.03%.
• The 3 year average ROIC (16.82%) for AMGN is well above the current ROIC(10.97%). The reason for the recent decline needs to be investigated.
• AMGN's Profit Margin of 28.20% is amongst the best of the industry. AMGN outperforms 98.01% of its industry peers.
• In the last couple of years the Profit Margin of AMGN has grown nicely.
• AMGN has a better Operating Margin (33.95%) than 98.01% of its industry peers.
• AMGN's Gross Margin of 73.74% is amongst the best of the industry. AMGN outperforms 83.89% of its industry peers.

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Check the latest full fundamental report of AMGN for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.